What you need to know about moving in together and money 

It might not sound very sexy, but it’s crucial that you fully understand where you stand legally and financially before you move in with a romantic partner. And it’s especially important that you know what will happen if the relationship ends. 

Before you make the big move and start unpacking your bags, there are some things you need to think about

Your partner’s finances 

When you start dating someone there’s a lot to find out about them. But what do you already know about your partner’s financial history? 

Are you aware of any debts or any savings? Do you know if they have long-term goals when it comes to cash? 

If you already know, brilliant, you’re doing better than most. 

But if not? All is not lost. It might sound strange, but take your new roomie on a Lockdown money date and get to know a little more about each other’s finances. 

Waiting until you have a money-related issue means it’s too late, emotions are high, and rash decisions will likely be made. 

Honesty and openness about money is essential once you’re living with someone, and the effects can last longer than you might think. 

Joint accounts and credit score 

While a joint bank account can often seem like a no-brainer for paying shared bills, the risks might outweigh the advantages. 

Living with someone or being married to them will not affect your credit rating alone, but as soon as you open a joint bank account together, you’ll be “financial associates”. 

What’s more, the credit record of the other account holder will have an impact on your own score. 

This means that if you or your partner applies for credit in the future, the lender will be able to check both of your credit records. 

If your partner hasn’t repaid their debts on time or, worse, has been declared bankrupt, it may affect your ability to get credit. 

Paying the bills 

If you’re moving into someone else’s home, make sure that you’re aware of exactly what bills you’ll need to pay and how much they will cost. 

Many flats will have additional fees, such as maintenance and ground rent, which can add up to thousands of pounds of additional bills annually. 

Remember to also think about how you’ll split your bills. It’s unlikely that you and your partner will be earning exactly the same amount so you must consider: will you split all of your bills 50/50, or will you split them as a percentage based on your income? 

Don’t forget that whoever’s name is on the bill is the one who will ultimately be liable for payment of the bill if a relationship ends, so play it safe and make sure both of your names are listed where you can. 

Tenancy agreements and liability 

Make sure that you have the correct documentation in place before you move in together so if it doesn’t work out you’re covered. 

If you’re renting a property and you’re both named as tenants, you have the same rights because you’re “joint tenants” of the property. 

If one party moves out and they’re still named as a tenant on the contract, they will be liable for rent payments. 

However, this does mean that person is also able to move back in at any point should they wish to. 

Make sure that if you separate and you move out of the property, your name is removed from the tenancy to avoid being stung by rental payments. 

Mortgages and liability 

If you move in with a partner who already has a mortgage, you don’t automatically have any rights over their mortgage, and vice versa. 

However, if you decide to call it quits further down the line, things could look a little different. 

Don’t forget that while you may think that this article is brilliant, it is intended for information purposes only and should not be mistaken for financial advice or recommendations.